Purple Co acquired 65% of Gold Corp for $2,600,000 on Jan 1. Gold owned a building and equipment with 10 year useful lives. The book
Purple Co acquired 65% of Gold Corp for $2,600,000 on Jan 1. Gold owned a building and equipment with 10 year useful lives. The book value of these assets was $830,000, and the fair value was $950,000. For Gold's other assets and liabilities, book value was equal to fair value. The total fair value of Gold's net assets was $3,500,000. Answer the following questions with this information using the acquisition method. Do NOT use $ signs or commas in your answer!
What is 100% of the fair value purchase price of Gold Corp? __________________
What is the amount of goodwill associated with Purple's purchase of Gold? ______________
What is the percentage of minority interest, expressed as a % ? __________________
What is the amount of the non-controlling interest as of the date of the acquisition? ____________________
What is the fair value difference that is attributable to the net assets (not goodwill)? ___________________
How much fair value amortization will be recorded at the end of the first year of acquisition? ______________________
Step by Step Solution
There are 3 Steps involved in it
Step: 1
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started